How does the Dollar Balance work in Custodial Mode?

In Custodial Mode, the Dollar Balance is powered by Stablesats. Stablesats uses Bitcoin derivatives markets — specifically perpetual inverse swap contracts — to create a synthetic US dollar position. Bitcoin is used as collateral to open a position that maintains a value of 1 US dollar, regardless of fluctuations in the Bitcoin price.

This allows users to hold, send, and receive dollar-equivalent value in their wallet without stablecoins or fiat integration. For details and risks, see the Terms and Conditions.

The video outlines the basic mechanics of this strategy.

In Non-Custodial Mode, the Dollar Balance uses the USDB stablecoin (issued by Brale) on the Spark protocol. See the Terms and Conditions for details.